ESMA finds adequate setup of measures to reduce volatility in trading of energy derivatives

ESMA Guidelines and Recommendations

Date: 18 July 2023

On 30 June 2023, the European Securities and Markets Authority (ESMA), published its Report on the implementation and functioning of the Intra-day Volatility Management Mechanism (IVM). Following an assessment of the IVMs introduced by trading venues and identification of differences in the approaches taken in their implementation and calibration, ESMA finds that they have been adequately set up.  ESMA however also highlights some practical challenges.